Reverse mergers are generally structured so that the company is able to obtain a majority of the stock (usually over 90%), and that corporate officers and insiders of the company retain more than 80% of the outstanding stock.
If this is the case here, which it most likely is, where is all the volume coming from? There would not be that many shares floating around for there to be this much volume. It's a shell that was most likely being actively marketed. Shells that are for sale usually have less than 5% of the total shares left outstanding. This makes them an attractive R/M candidate.
It just does not make any sense having 1.3 billion shares traded in 1 day.
Were some of the MM's naked shorting it? If so, how are they going to cover without taking a bath?
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